In the mid- and late 1990s the tobacco industry in the United States faced grave legal and financial threats. Under heavy attack from states seeking compensation to recover costs for smoking-related health care, from the federal government seeking further regulation, and from individual smokers seeking damages for illness, the major cigarette producers sought ways to protect themselves. After a tentative $368 billion settlement (1997) with state attorneys and plaintiffs' lawyers fell apart, lawsuits were brought against the industry by Florida, Minnesota, Mississippi, and Texas; the suits were settled for $40 billion, to be paid over 25 years. In 1998 the remaining 46 states accepted a $206 billion plan to settle lawsuits they had filed against the industry. Individual lawsuits continued to pose potential significant financial threats.
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